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El Salvador Announce Plans for 'Bitcoin City'

GB Market Commentary 22/11/2021

by Marcus Sotiriou

Bitcoin dropped roughly 5% overnight from around $59,000 to $57,300 after a green weekend across the board. Avalanche in particular rose over 30% in the past 2 days as it climbed into the top 10 cryptocurrency market valuations for the very first time. The total value locked on Avalanche exceeded $21 billion yesterday which is around 50% higher than Solana’s total value locked, who is a close competitor to Avalanche. This means that, even with Avalanche’s incredible rally over the past few months, it may still be very undervalued at current price levels.

Yesterday, El Salvador president Nayib Bukele announced he would issue a $1 billion ‘Bitcoin Bond’ to build the first Bitcoin city in the world. This city will be carbon neutral with most of the energy coming from a volcano. It would also be tax-free apart from VAT.

As the total cryptocurrency market cap consolidates over $2.5 trillion, the asset class is reaching higher levels of maturity. The CEO of Commonwealth Bank of Australia (the largest bank in Australia) said over the weekend that “we see risks in participating, but we see bigger risks in not participating.” This statement complements the reasoning of how many analysts predict Bitcoin to reach over $100,000 in the coming months, as an institutional FOMO could ensue. Early this month, the bank announced that it will be providing some customers with the ability to buy, sell, and hold crypto assets directly through its app in partnership with crypto exchange Gemini


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